Third-quarter earnings are indicating a divided economy

A Taco Bell restaurant in El Cerrito, California, US, on Tuesday, April 29, 2025. David Paul Morris | Bloomberg | Getty Images With more consumer companies preparing to report third-quarter earnings this week, Wall Street will be watching for signs of a bifurcated or “K-shaped” economy as consumers diverge in their spending behaviors. There have…

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Here’s which sectors are showing bifurcation

Coke beverages are displayed in a 7-eleven convenient store on July 17, 2025 in Austin, Texas. Brandon Bell | Getty Images Amid recession fears, a government shutdown and tariff uncertainty, consumers are increasingly diverging in their spending. Wealthier Americans are engaging their purchasing power, while lower-income Americans are starting to pull back — commonly described…

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